What is the total current liabilities to be presented in the statement of financial position as of December 31, 2021? Cash and cash equivalents400,000Trade and other receivables2,000,000Subscription receivables375,000Inventory500,000Trade and other payablesIncome tax payable670,000196,500Additional information:• Trade and other receivables include long-term advances to company officers amounting to P430,000The subscriptions receivable has the following call dates: June 30, 2022 – P200,000; December 31,2022 - P100,000; and June 30, 2023- 975,000Inventory of P500,000 was determined by physical count. On December 31, 2021, goods costingP125,000 are in transit from a supplier. Terms of purchase of the said goods is FOB origin. The goodsand the related invoice have not been received as of year-end.Trade and other payables include dividends payable amounting to P170,000, of which P70,000 ispayable in cash and P100,000 is distributable in CASHEW's own shares.

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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What is the total current liabilities to be presented in the statement of financial position as of December 31, 2021?

Cash and cash equivalents
400,000
Trade and other receivables
2,000,000
Subscription receivables
375,000
Inventory
500,000
Trade and other payables
Income tax payable
670,000
196,500
Additional information:
• Trade and other receivables include long-term advances to company officers amounting to P430,000
The subscriptions receivable has the following call dates: June 30, 2022 – P200,000; December 31,
2022 - P100,000; and June 30, 2023- 975,000
Inventory of P500,000 was determined by physical count. On December 31, 2021, goods costing
P125,000 are in transit from a supplier. Terms of purchase of the said goods is FOB origin. The goods
and the related invoice have not been received as of year-end.
Trade and other payables include dividends payable amounting to P170,000, of which P70,000 is
payable in cash and P100,000 is distributable in CASHEW's own shares.

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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